Accepting Credit Cards
Online is easy using a third party credit card processor. If you are
starting out or are a low volume trader, then a merchant account may
not be cost effective for accepting credit cards online. Third party
credit card processor offer the ideal solution for the majority of
online businesses because they are easy to setup and affordable.
Accepting Credit Cards Online with a third party
credit card processor.
A third party credit card processor is a company that
can accept credit card orders on your behalf on their website. You
pay a small setup free and a percentage of each sale and receive a
check minus the processing fees at the end of each month depending
on the particular company.
Once you sign up with a company like Clickbank or
PayPal, all you have to do is add the buy button or code to you site
and your customer is taken to the third party credit card
processor's site to process the payment. Once payment has been
processed they are returned to your site to complete the order.
Accepting credit cards online could not be easier.
The 3rd party options for accepting credit cards
online
PayPal
An
ideal solution for accepting credit cards online if you are just
starting an online business. Also accepts online checks. Paypal also
allows US residents without a credit card to make payments online.
Offer a shopping cart and recurring billing. While some have had
difficulties with Paypal I have used them for over a year with no
problems.
Fees: No setup fee. Processing fee is 2.9%
+30c per transaction. Payment to you is made directly into your bank
account for US residents.
Clickbank
Clickbank offer credit card and online check processing for
digital goods and services. Not for sales of physical goods,
recurring billing or with shopping carts. One of the great
advantages Clickbank offer is you can recruit affiliates to sell
your products and they will manage the tracking and payments for
you. Great service if you are both accepting credit cards online and
operating an affiliate program
Fees: Setup fee $49.95.
Processing fee is 7.5% + $1.00 per transaction. Payment to you by
check twice monthly, $2.50 processing fee per check.
2Checkout
2Checkout
offer one of the cheapest options for for accepting credit cards
online. All major credit cards accepted. Recurring billing available
and shopping carts supported. Digital and tangible goods supported.
Fees: Setup fee $49.00. Processing fee is 5.5% +
$0.45 per transaction. Payment to you by check or direct deposit
(Free in US).
StormPay
StormPay is a program that is very similar to PayPal. They
accept payments from all the major credit cards, check and even
PayPal. They support both weekly and monthly subscriptions. They
also accept payments for MLM's and income opportunities. They also
have a lucrative affiliate program.
Fees: Setup free.
Processing fee is 2.9% plus $0.39. Payment to you by check or ATM
debit card - fee $2.00.
iBill
IBill is
limited to the sale of digital goods and services. They offer a
recurring billing option.
Fees: Depends on the
service.
CCNow
CCNow is
limited to the sale of physical goods only. Good service if you are
just accepting credit cards online for physical
goods
Fees: Setup free. Monthly fee $9.95 - $11.95.
Processing fee is 9% to 11% per transaction (First $100 in
transactions free each month). Payment to you by check twice
monthly..
Others worth looking at include Share*It, Visage, Digibuy, Worldpay and CCBill
One additional
point to note is that many third party credit card processors will
withhold a percentage of your check for a period of 90 days or more
as security against charge backs. This varies from company to
company as do charge back fees.
I have found that the best option for accepting credit
cards online is to use a combination of for example Clickbank and
PayPal, or Paysystems and Stormpay. This ensures you have covered
all the payment options. If your are operating an affiliate program
then Clickbank
may be your best option for Accepting
Credit Cards Online
See also Merchant
Accounts
